Rightmove hikes dividends amid confident outlook
Rightmove has hiked dividends after issuing a confident outlook for 2025 despite wider uncertainties in the UK housing market.
The property portal unveiled a 6.1p per share dividend in its full-year results on Friday, up five per cent and taking the total payout to 9.8p.
Underlying operating profit increased four per cent to £273.9m in the year to December 31 as revenue rose seven per cent to £389.9m.
Rightmove said it expected between eight to 10 per cent revenue growth in 2025 as the housing market stabilises.
Interest rates are at their lowest level since June 2023 after fresh cuts from the Bank of England earlier this month. This has fed into the mortage market and the expectation is for more cuts throughout this year.
The latest data from Nationwide on Friday showed UK house prices grew for a six straight month as economists forecast a rush of purchases in the coming months.
“We delivered strong results, demonstrating yet again the resilience of Rightmove’s business model,” chief executive Johan Svanstrom said.
“We have a clear strategy to further digitise the home moving market, powered by the UK’s largest set of property data and insights.”
Rightmove said it had seen “sustained” traffic growth throughout the year, with a total of 16.4bn minutes spent on its online platform, up six per cent.
Shares rose nearly two per cent in early deals.
Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club, said: “These are solid results from Rightmove, underlining the resilience of its business model.
“Despite the uncertain housing market, 2024 results were in line with expectations and the outlook is confident, with growth set to strengthen in 2025.”
However, Huggins said Rightmove would need to innovate to keep pace with the sector rather than just relying on big price increases.
“Innovation comes at a cost. Operating margins are no longer rising, with headcount up 14 per cent in 2024.
“But shareholders won’t mind as long as this accelerates top line growth. The initial signs are promising, with strategic growth areas like rental services showing good early traction.”